In a 14-page letter sent on April 10, James rallied for stronger federal regulations on crypto. She emphasized the need to protect American investors and financial markets.
James pointed out the inherent risks of an unregulated crypto industry. She claims it undermines the stability of financial markets, weakens national security, and threatens the U.S. dollar’s dominance.
James Warns Against Crypto in Retirement Portfolios, Calls for Stricter Regulations
She also warned of the dangers of price manipulation, fraud, and the overall volatility of digital assets. “Cryptocurrency has no intrinsic value on which its prices are based,” James said, underscoring that it is unpredictable and unsuitable for retirement savings.
One of her key concerns is the potential inclusion of cryptocurrencies in retirement portfolios. She argued that the high volatility of digital assets makes them an unreliable investment, especially for retirement funds meant to provide stability. She specifically targeted crypto ETFs, stressing that unlike traditional ETFs. These last ETFs are backed by stocks and bonds. She concluded that those tied to crypto are vulnerable to theft.
NY Attorney General Letitia James urged Congress to strengthen crypto regulation and ban digital assets from retirement plans, citing their volatility and lack of intrinsic value. She warned unregulated crypto could threaten the dollar, national security, and market stability,…
— Wu Blockchain (@WuBlockchain) April 11, 2025
James called for Congress to introduce legislation that would require more oversight of the crypto sector, including regulations on stablecoins, anti-money laundering compliance, and protections against fraud. Her proposal also suggests that stablecoin issuers should have a U.S. presence and that platforms should be required to comply with strict financial regulations. In addition, she called for measures that would ensure transparency in pricing and safeguard against conflicts of interest.
More About Crypto Regulation
Treasury Secretary Scott Bessent has announced that the U.S. government is re-examining regulations affecting blockchain technology, stablecoins, and emerging payment systems.
JUST IN:
Tick tock, legacy finance. Long live #Bitcoin. pic.twitter.com/Rp5Q7W4L4N
— Carl ₿ MENGER
(@CarlBMenger) April 9, 2025
This review aims to identify and address regulatory barriers hindering innovation and investment in the financial technology sector. Bessent emphasized that the goal is to create a more balanced regulatory environment that fosters economic growth and benefits all Americans, not just Wall Street.
Disclaimer
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